Sensex, Nifty firm up gains for third session; IT, financial shares rally

Continuing its winning run for the third consecutive session, the BSE benchmark Sensex added another 221 points to revisit the 60,500-level on Tuesday, propped up by buying mainly in IT and financial shares.

After early hiccups, the 30-share benchmark remained poised throughout the session and went on to hit the day’s high of 60,689.25. It finally ended 221.26 points or 0.37 per cent higher at 60,616.89.

Likewise, the NSE Nifty gained 52.45 points or 0.29 per cent to finish at 18,055.75.

HCL Tech topped the Sensex gainers’ chart with a leap of 4.30 per cent, followed by HDFC, Tech Mahindra, TCS, RIL, Sun Pharma and SBI.

On the other hand, Tata Steel, Bajaj Finance, ITC, Asian Paints, Kotak Bank, Dr Reddy’s and IndusInd Bank were among the laggards, dropping up to 3.32 per cent.

“Domestic benchmark indices showcased a flattish trend with positive bias as the market weighed the expectations of a strong quarter amid concerns over rising cases, supply issue and inflationary pressure.

“Global market was on the edge as Fed meeting minutes hinted at rate hikes, elevated US inflation and the awaited release of US CPI inflation data. Domestic inflation levels are also likely to be significant due to unfavourable base effect though food prices have declined during December,” said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP – Research, Religare Broking Ltd said initially, weak global cues were weighing on sentiments, however resilience in IT majors boosted the benchmarks.

“We’re in the fourth week of rebound and now all eyes are on the earnings of three IT majors — Infosys, TCS and Wipro for cues. We reiterate our positive yet cautious view on markets and suggest focusing more on sector/stock selection,” he added.

Sectorally, BSE power, utilities, IT, realty and teck indices emerged as top gainers — climbing as much as 1.80 per cent.

In contrast, BSE metal index dropped over 2 per cent. Other laggards were telecom, FMCG and healthcare.

Broader midcap, smallcap and largecap indices underperformed the benchmark, gaining up to 0.30 per cent.

World markets were mixed as investors counted down to US Federal Reserve Chair Jerome Powell’s appearance before a Senate panel where he is expected to outline the roadmap for rate hikes.

Elsewhere in Asia, bourses largely saw mild to heavy selling as investors turned cautious amid rising Omicron cases in China.

Markets in Europe were trading in the green in mid-session deals.

On the forex market front, the rupee closed 11 paise higher at 73.94 against the US dollar.

Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded shares worth Rs 124.23 crore on Monday, according to stock exchange data.

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